Regional Morning Notes

Tuesday, 04 September 20181 Refer to last page for important disclosures. Regional Morning Notes PLEASE CLICK ON THE PAGE NUMBER TO MOVE TO THE RELEVANT PAGE. CHINA Sector Aviation Page 2 1H18 results review: All three airlines guide for better domestic yields and flat to lower non-fuel unit costs. Our top pick is CSA. Results Tianneng Power (819 HK/SELL/HK$8.10/Target: HK$6.00) Page 5 1H18: Net profit up 17% yoy, in line with estimates, but policy headwinds ahead. Downgrade from HOLD to SELL. HONG KONG Sector Gaming - Macau Page 8 2Q18 results wrap-up and 2H18 outlook. INDONESIA Strategy Alpha Picks: Banks And Consumer Names Page 11 We select banking (BBNI, BMRI and BBRI) and consumer (ASII, GGRM) names as our top alpha picks. MALAYSIA Strategy Alpha Picks: Patience Required Page 15 Underwhelming 2Q18 corporate earnings and Pakatan administration’s see-saw statements on the status of ECRL send our August portfolio down 9.6% mom. 2Q18 Results Page 18 Underwhelming reporting season surprisingly extended to 2Q18; outlook not looking promising as government rationalises fiscal spending. Update Serba Dinamik Holdings (SDH MK/BUY/RM3.85/Target: RM4.30) Page 20 With its orderbook close to target, the focus shifts to execution. We are positive on the level of transparency on project updates, which include details of project delays. SINGAPORE Update Singapore Press Holdings (SPH SP/HOLD/S$2.81/Target: S$2.58) Page 23 4QFY18 page count declines by 14% on weak display ads segment. THAILAND Update TTCL (TTCL TB/BUY/Bt9.55/Target: Bt11.00) Page 26 Expect synergy from Sojitz Corporation. KEY INDICES Prev Close 1D % 1W % 1M % YTD % DJIA 25964.8 (0.1) 0.7 2.0 5.0 S&P 500 2901.5 0.0 0.9 2.2 8.5 FTSE 100 7504.6 1.0 (1.0) (2.0) (2.4) AS30 6416.5 (0.2) 0.6 1.4 4.0 CSI 300 3321.8 (0.4) (2.5) 0.2 (17.6) FSSTI 3207.2 (0.2) (0.6) (1.8) (5.8) HSCEI 10813.6 (0.6) (2.1) 1.1 (7.6) HSI 27712.5 (0.6) (2.0) 0.1 (7.4) JCI 5967.6 (0.8) (1.0) (0.7) (6.1) KLCI 1813.6 (0.3) 0.3 1.9 0.9 KOSPI 2307.0